When Uber came on the scene (not literally), the traditional way of doing business started to transform into something never seen before. This previously unknown phenomenon is called the “sharing economy,” a general term referring to a business model in which groups share the use of goods and/or services. The sharing economy model has become more popular, primarily due to the proliferation of ways we connect electronically.
Uber and Airbnb
Middle and high school classes will eventually need to offer a course called “Sharing Economy 101.” When that day comes, you can expect Uber and Airbnb to represent the case studies that have led other companies to follow the economic distribution model, and countless other companies in the future to adopt the same. business principle. Considered leaders in the taxi and hospitality industries, Uber and Airbnb have forced traditional companies in their respective industries to make rapid changes to take advantage of the growing sharing economy.
Why Sharing Works for the New Economy
Sharing works through pooled resources that simplify transactions of products and services. People who choose to share provide consumers with quick and efficient access to products and services. You’ve probably heard the term “economies of scale”. The same principle applies to the sharing economy, with a small twist. Companies operating in the sharing economy model implement organizational strategies. In other words, practitioners of the sharing economy offer better products and services at lower prices than those offered by the competition. For example, Uber does not own a fleet of taxis and Airbnb does not own real estate to offer hotel services.
Both companies act as intermediaries connecting businesses and customers.
Is there a limit to sharing?
Infrequently used products with high price tags are prime candidates for the sharing economy. Think seasonal items like boats, fishing tackle, grills, and especially garden tools and supplies. Robotic lawnmowers have changed the way some homeowners mow their lawns. However, robotic lawn mowers are also prohibitively expensive and not used enough to justify the high price. The solution: Create a service that connects lawnmower owners and dealers who can rent smart lawnmowers by the hour or by the day. Other quality gardening supplies for the sharing economy include snowblowers and cultivators.
The question is not whether the collaborative economy will enter the horticultural sector, but when. By then, technology should be further advanced to drive the business model here to stay at the forefront of the UK economy.